Divorce Articles - Florida Law
How a Divorce can Impact Retirement
Posted on December 12, 2016
A divorce can happen at any time in a person’s life. Whether you’re three years or 30 years into the marriage, separation isn’t an impossibility. However, the older you are during a divorce, the more you need to pay attention to what state your retirement fund is in. Divorce can have a huge impact on your retirement and 401k.
If you’re over 50 and in the midst of a divorce, consider the following when making decisions concerning the division of your retirement:
- Pre-Marital Contributions - Remember that when going through a divorce, the only assets that are subject to equitable division are the ones acquired during the marriage. If you started saving for retirement before you were married, that money should not be distributed to the other party in a divorce. You must keep records of the pre-marital amount, and if you do not have the records, you need to try and obtain them as soon as possible.
- Divide Retirement by Percentage - If you are dividing up your 401k, it is sometimes best to split percentage wise, not by a specific amount. For example, if you have $200,000 saved up, you might want to draft the settlement agreement to say your spouse gets 50% rather than $100,000. This protects your assets if the market crashes or if the market does well. There is much more you need to know regarding the division of the retirement accounts, but as a general rule the language you use to divide retirement accounts matters very much—speak with a professional before agreeing to any language dividing your accounts.
- Social Security and the Length of Marriage Matters- For one spouse to avail themselves of the other’s Social Security, they have to had been married for at least ten years. In some cases, the court will offer continuances. However, most couples that are aware of this will delay their divorce, so one of them can reap the benefits of the other’s Social Security.
Our Orlando Divorce Attorney Can Help!
If you are in the midst of a divorce and are worried about your retirement, call the attorneys at the Roberts Family Law Firm. Our professionals will fight tirelessly for you and your interest to make sure your assets are divided in your best interest. For questions about how a divorce will affect your retirement plan, call us today at (407) 426-6999 or fill out the online form located on this page and we will contact you shortly. Your privacy is very important to us and we will keep your information confidential.
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